%0 Journal Article
%T Terrorist threats and transitional dynamics in an overlapping generations model
%J Defence and peace economics
%D 2005
%A Shieh, JY
%A Chen, Joyce H.
%A Chang, Jen Jen
%A Lai, CC
%V 16
%N 6
%P 415-425
%X This paper incorporates the nature of terrorist threats into the Yarri (1965)-Blanchard (1985) model and uses it to discuss the transitional dynamics of consumption in response to an anticipated terrorist attack. It is shown that if the terrorist attack is pre-announced (and hence anticipated) and the public is fully informed, short-term consumption may misadjust from its long-term level. Before the terrorist attacks actually take place, households may be motivated to increase (rather than decrease) their consumption as a temporary response. This result may explain the temporary phenomenon of the increased consumption of certain types of goods in the period following September 11.<p />
%G 
%I Informa - Taylor and Francis Group
%@ 1024-2694
%U http://dx.doi.org/10.1080/10242690500115956